Our town fought off a historic district that would have given a board of directors this exact same power - you paint the buildings the colors they approve, and they tell you when to paint etc. etc. etc.
Undeterrred, the historic commission came back with the same guidelines a couple of months later, but they put a prettier face on them, promising it wouldn't be intrusive. It hasn't been passed yet, but they've let the dust settle and will approve these things when nobody's looking.
This whole town of Nashville, IN is centered around being a historical district. It is just a tourist trap that gets lots of tourists during the change of season in the fall. The town probably has 800 people and nearly everyone runs or works in a shop. They have some artists and some nice glass work, but mostly a bunch of trinkets.